Acquisition of London Pubs portfolio


 
TIDMMAX 
 
In  a sale and leaseback transaction, Max Property Group Plc has today exchanged 
contracts  to acquire a portfolio of 29 freehold pubs let to Enterprise Inns Plc 
for  35 years with minimum uplifts throughout the term for cash consideration of 
 GBP42,560,800. 
 
The  properties  are  located  in  and  around  Central  London  in  high  value 
residential  areas: Marylebone, Notting  Hill, Chelsea, Spitalfields, Southwark, 
Camden,  Highgate,  Islington,  Barnes,  Sheen,  Chiswick,  Battersea,  Clapham, 
Balham, Tooting and Fulham. 
 
All  of the properties will  be held on full  repairing and insuring leases with 
annual  upward only increases for the first five years and five-yearly increases 
thereafter,  with all increases in line with  RPI subject to a minimum uplift of 
3% per  annum and a  maximum uplift of  4% per annum.  The  initial rent roll is 
 GBP2,975,000 per annum. 
 
Completion  is expected  to occur  on 31 January  2011. The Group's current cash 
resources  are c.  GBP110 million,  and terms have been  agreed with Eurohypo AG to 
provide non-recourse debt finance up to 60% of the total cost. 
 
The acquisition brings the total property portfolio (based on 30 September 2010 
independent  valuations plus  the nightclubs  and pubs  portfolio at cost) to c. 
 GBP315 million. 
 
Mike  Brown, CEO  of Prestbury  Investments LLP,  external asset manager for Max 
Property Group Plc, said: 
 
"Consistent with our primary focus on entry price, this sale and leaseback 
offers attractive prospective returns underpinned by both the long leases with 
guaranteed uplifts and the vacant possession value of these properties located 
throughout some of London's most valuable boroughs." 
 
14 January, 2011 
 
 
ENQUIRIES: 
 
 Prestbury Investments LLP   Tel: 020 7647 7647 
 
 Mike Brown 
 
 
 
 College Hill                Tel: 020 7457 2020 
 
 Gareth David 
 
 
 
 Morgan Stanley (NOMAD)      Tel: 020 7425 8000 
 
 Jonathan Lane 
 
 Edward Knight 
 
 
 
 
 
 
 
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     originality of the information contained therein. 
 
Source: Max Property Group plc via Thomson Reuters ONE 
 
[HUG#1479913]

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